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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-4.83 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -4.83 suggests that the company is not a manipulator.

PAM' s 10-Year Beneish M-Score Range
Min: -6.63   Max: 2.82
Current: -4.83

-6.63
2.82

During the past 11 years, the highest Beneish M-Score of Pampa Energia SA was 2.82. The lowest was -6.63. And the median was -2.76.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.6962+0.528 * -3.0189+0.404 * 0.8688+0.892 * 0.9565+0.115 * 1.1126
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3772+4.679 * -0.1412-0.327 * 1.1874
=-4.83

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $244.8 Mil.
Revenue was 176.325443787 + 169.397278107 + 162.87147929 + 169.301538462 = $677.9 Mil.
Gross Profit was -0.474792899408 + 13.4633136095 + -7.00982248521 + -2.78615384615 = $3.2 Mil.
Total Current Assets was $504.1 Mil.
Total Assets was $1,697.8 Mil.
Property, Plant and Equipment(Net PPE) was $908.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $46.9 Mil.
Selling, General & Admin. Expense(SGA) was $155.8 Mil.
Total Current Liabilities was $693.3 Mil.
Long-Term Debt was $413.0 Mil.
Net Income was 36.6498224852 + -46.1662721893 + -11.6637869822 + -19.0071005917 = $-40.2 Mil.
Non Operating Income was 11.3195266272 + -35.9217751479 + -32.84 + -0.325798816568 = $-57.8 Mil.
Cash Flow from Operations was 55.5132544379 + 59.1136094675 + 81.5718343195 + 61.035739645 = $257.2 Mil.
Accounts Receivable was $150.9 Mil.
Revenue was 134.77704142 + 164.757159763 + 186.164615385 + 223.024733728 = $708.7 Mil.
Gross Profit was -9.16923076923 + -12.2209467456 + 5.53869822485 + 5.77514792899 = $-10.1 Mil.
Total Current Assets was $409.7 Mil.
Total Assets was $1,443.3 Mil.
Property, Plant and Equipment(Net PPE) was $754.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $43.6 Mil.
Selling, General & Admin. Expense(SGA) was $118.2 Mil.
Total Current Liabilities was $471.9 Mil.
Long-Term Debt was $320.1 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(244.824970414 / 677.895739645) / (150.904497041 / 708.723550296)
=0.36115431 / 0.21292434
=1.6962

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(13.4633136095 / 708.723550296) / (-0.474792899408 / 677.895739645)
=-0.01421758 / 0.00470949
=-3.0189

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (504.145325444 + 908.63112426) / 1697.84319527) / (1 - (409.738461538 + 754.657633136) / 1443.32508876)
=0.16789934 / 0.19325445
=0.8688

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=677.895739645 / 708.723550296
=0.9565

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(43.5892307692 / (43.5892307692 + 754.657633136)) / (46.8965680473 / (46.8965680473 + 908.63112426))
=0.0546062 / 0.04907923
=1.1126

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(155.750059172 / 677.895739645) / (118.232662722 / 708.723550296)
=0.22975518 / 0.1668248
=1.3772

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((413.009822485 + 693.257633136) / 1697.84319527) / ((320.126982249 + 471.912307692) / 1443.32508876)
=0.65157222 / 0.54876015
=1.1874

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-40.1873372781 - -57.7680473373 - 257.23443787) / 1697.84319527
=-0.1412

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -4.83 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun05Jun06Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.62380.49210.75131.06371.24321.05231.5563
GMI 1.4851.0931.0541.21921.50822.3609-1.0266
AQI 0.56111.08390.77041.04442.05530.78030.5969
SGI 11.58482.71351.01981.1891.19571.15050.7968
DEPI 0.82030.50331.08850.91450.89781.06331.1461
SGAI 0.80580.88341.14781.06071.031.00281.7581
LVGI 1.04531.11490.93571.09661.15431.15641.2517
TATA -0.0243-0.0633-0.0942-0.0594-0.1359-0.1441-0.0778
M-score 6.58-1.71-3.19-2.45-2.09-2.39-3.94

Pampa Energia SA Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.05440.63170.89311.05510.77491.27441.14621.55131.69681.6962
GMI 1.62411.61351.98322.465412.8615-6.2017-2.2455-0.9839-0.945-3.0189
AQI 1.95260.83692.00110.78030.90210.68180.76010.59690.57160.8688
SGI 1.50011.52531.48261.14741.12410.9530.84840.79940.80970.9565
DEPI 1.14481.28570.92451.52480.91770.81750.78970.79931.03031.1126
SGAI 1.22551.05491.04951.04231.05031.38051.52411.74011.71941.3772
LVGI 1.22681.11821.04421.15641.14771.15581.2291.25171.28791.1874
TATA -0.097-0.111-0.1075-0.1208-0.1636-0.0616-0.086-0.0783-0.0736-0.1412
M-score -1.82-2.63-1.76-2.182.82-6.63-4.88-3.96-3.77-4.83
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